Missing Blocks in the Chain: why tokenised markets need lending markets

Tokenisation alone does not create liquidity. In our short paper, Dr. Dirk Sturz and Felix Puller show why repo, securities lending and collateral management are the missing building blocks of tokenised markets – and what role banks and asset managers can play.

Key findings

• Real-time settlement eliminates settlement risk but requires pre-funding instead of the T+2 buffer.
• Without securities lending, market makers cannot quote tight bid-ask spreads.
• On-chain repo needs legal clarity and collateral that can be mobilised quickly.
• Banks and asset managers can provide this infrastructure and generate income by lending tokenised assets.

You can download the short paper using the button below.